scorecardresearchNFO Alert: Kotak Mutual Fund launches Kotak FMP Series 305. Here's all about it

NFO Alert: Kotak Mutual Fund launches Kotak FMP Series 305. Here's all about it

Updated: 06 Jan 2023, 11:49 AM IST
TL;DR.
The new fund offer opened on January 5 and will close on January 11, 2023. This is a scheme with relatively high interest rate risk and relatively low credit risk.
Kotak Mutual Fund announced on January 5 the launch of Kotak FMP Series 305.

Kotak Mutual Fund announced on January 5 the launch of Kotak FMP Series 305.

Many mutual fund houses are engaging in launching new schemes at the beginning of the year 2023. Recently, Kotak Mutual Fund announced on January 5 the launch of Kotak FMP Series 305 under its debt category.

The new fund offer (NFO) opened on January 5 and will close on January 11, 2023 and the fund will be managed by Deepak Agrawal. This is a scheme with relatively high interest rate risk and relatively low credit risk.

READ MORE: Should you use debt funds as alternatives to fixed deposits? We explain

It is a close-ended debt scheme with a maturity of 1200 days. Hence, for more than 3 years investors can take the benefits of indexation and get superior returns over a fixed deposit of the same tenure, especially if they are in the highest tax bracket.

The benchmark index for the mutual fund scheme is NIFTY Medium Duration Debt Index and the minimum investment amount is 5,000 and in multiples of 10 thereafter and there is no exit load.

READ MORE: Be aware of these things before you invest in an NFO

The investment objective of the scheme is to provide regular income and capital growth with limited interest rate risk to the investors through investments in a portfolio comprising of debt instruments maturing on or before the maturity of the scheme. There is no assurance that the investment objective of the scheme will be achieved, according to the fund house. 

READ MORE: 5 things you should know before investing in debt funds

This scheme is suitable for investors who are seeking income over the long term investment horizon and want to invest in debt and money market securities, as per press release. 

The schemes will list on BSE within 5 business days from the date of allotment. Investors can trade on the exchange and investors wishing to exit may do so, through BSE or any other stock exchange where the scheme will be listed.

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First Published: 06 Jan 2023, 11:49 AM IST